Credit card debt, loan delinquencies down in 1Q
Friday, June 20, 2008
Credit card data released Thursday by TransUnion.com shows the first quarter marked the first dip in credit card debt and loan delinquencies since the beginning of 2007.
The Chicago-based credit and information management firm said average credit card debt and national credit card loan delinquency (the ratio of borrowers 90 or more days past due) had statistically relevant quarterly declines. National average credit card debt per credit card borrower dropped 1.25 percent to $1,673 since the fourth quarter of 2007, though the total remains 5.6 percent higher than $1,584 in the same period last year.
The ratio of credit card borrowers delinquent on one or more of their credit cards fell to 1.19 percent in the first quarter, down 12.5 percent. However, that total also is higher than 0.91 percent in the same period last year.
"As a whole, the recent deceleration, however slight, in the mortgage delinquency rate is reflected in the bank card market as consumers take stock of their overall debt and begin to catch up on their repayment schedule wherever possible," said Ezra Becker, principal consultant in TransUnion's financial services group. "Even states like California, Florida, and Nevada who have experienced large increases over the last four quarters in their bank card delinquency rates showed a drop in the first quarter."
California, which had consistently shown delinquency rates less than those for the nation as a whole for years, turned to move higher than the national rate during 2007.
News Source : bizjournals.com |
